Shipping Costs Surge as Hormuz Remains Blocked

(MENAFN) Global logistics operators are grappling with mounting disruptions and spiraling expenses as Middle East hostilities continue to choke off vital maritime corridors — and despite a temporary U.S.-Iran ceasefire that briefly eased energy prices, there are no signs that shipping traffic through the region is returning to normal, with uncertainty over the Strait of Hormuz showing no signs of abating.

Germany-based container shipping giant Hapag-Lloyd has suspended all vessel transits through both the Strait of Hormuz and the Suez Canal, while also halting bookings to and from the Upper Gulf region. Six of the company's ships remain trapped in the Persian Gulf, wiping out approximately 25,000 TEUs of available capacity — where one TEU represents a standard 20-foot (6.1-meter) container.

The financial toll has been severe. The conflict has driven up Hapag-Lloyd's weekly operating costs by an estimated $40 million to $50 million, fueled by elevated bunker fuel prices, steeper insurance premiums, and widespread schedule disruptions. The company has responded by introducing a War Risk Surcharge for Gulf shipments and an Emergency Fuel Surcharge to cushion the blow of globally surging fuel costs.

"More broadly, the conflict has increased complexity and costs across the shipping industry, including higher bunker prices, insurance premiums, storage costs, and inland transportation expenses," the firm told media.

The cascading costs do not stop there. Diverting vessels around the Cape of Good Hope — a significantly longer alternative route — pushed Hapag-Lloyd's expenditure on CO2 emission certificates up by €52.6 million ($61.5 million), bringing the total to €136.9 million. Bunker fuel consumption rose 6.6 percent during the same period, reaching five million tons.

Alternative Routes Activated
Logistics powerhouse DHL has also been forced to adapt. The suspension of maritime traffic through the Strait of Hormuz, compounded by airspace restrictions, has injected fresh layers of complexity into global supply chains, the company said.

In response, DHL has redirected shipments away from conflict-affected zones and activated alternative logistics gateways across the Gulf Cooperation Council region, including Riyadh and Muscat. The firm has also deployed additional trucking capacity and introduced new network flights to Bangalore and Delhi to sustain trade flows between Asia and Europe.

"Capacity availability continues to be a key factor influencing market conditions, alongside higher operating costs such as fuel, which are reflected through established industry surcharge mechanisms.

"Given that the situation remains highly volatile, we continue to closely monitor developments," the company said.

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